Florida Senate - 2007                      COMMITTEE AMENDMENT
    Bill No. CS for SB 96
                        Barcode 561060
                            CHAMBER ACTION
              Senate                               House
                                   .                    
                                   .                    
 1           Comm: FAV             .                    
       04/24/2007 05:26 PM         .                    
 2                                 .                    
                                   .                    
 3         Floor: 1/F/2R           .                    
       05/02/2007 11:28 AM         .                    
 4  ______________________________________________________________
 5  
 6  
 7  
 8  
 9  
10  ______________________________________________________________
11  The Committee on Finance and Tax (Haridopolos) recommended the
12  following amendment:
13  
14         Senate Amendment (with title amendment) 
15         Delete everything after the enacting clause
16  
17  and insert:  
18         Section 1.  Section 288.1254, Florida Statutes, is
19  amended to read:
20         (Substantial rewording of section. See
21         s. 288.1254, F.S., for present text.)
22         288.1254  Entertainment industry financial incentive
23  program.--
24         (1)  DEFINITIONS.--As used in this section, the term:
25         (a)  "Certified production" means a qualified
26  production as determined by the Office of Tourism, Trade, and
27  Economic Development. The term excludes a production if its
28  first day of principal photography in this state occurred
29  before the production is certified by the Office of Tourism,
30  Trade, and Economic Development, unless the production spans
31  more than 1 fiscal year, was a certified production on the
                                  1
    10:26 AM   04/24/07                             s0096.ft26.001

Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. CS for SB 96 Barcode 561060 1 first day of such photography, and is required to submit an 2 application for continuing the same production in the 3 subsequent year. 4 (b) "Digital media project" means a production of 5 interactive entertainment which is produced for distribution 6 in commercial or educational markets, including a video game, 7 simulation, or animation, or a production intended for 8 Internet or wireless distribution. The term excludes a 9 production deemed by the Office of Film and Entertainment to 10 contain obscene content as defined in s. 847.001(10). 11 (c) "High-impact television series" means a production 12 created to run multiple production seasons having an estimated 13 order of at least seven episodes per season and qualified 14 expenditures of at least $625,000 per episode. 15 (d) "Off-season certified production" means a 16 production, other than a digital media project or an animated 17 production, which films 75 percent or more of its principal 18 photography days from June 1 through November 30. 19 (e) "Production" means a theatrical or direct-to-video 20 motion picture, a made-for-television motion picture, a 21 commercial, a music video, an industrial or educational film, 22 an infomercial, a documentary film, a television pilot 23 program, a presentation for a television pilot program, a 24 television series, including, but not limited to, a drama, a 25 reality show, a comedy, a soap opera, a telenovela, a game 26 show, a miniseries production, or a digital media project by 27 the entertainment industry. One season of a television series 28 is considered one production. The term excludes a weather or 29 market program, a sporting event, a sports show, a gala, a 30 production that solicits funds, a home shopping program, a 31 political program, a political documentary, political 2 10:26 AM 04/24/07 s0096.ft26.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. CS for SB 96 Barcode 561060 1 advertising, a gambling-related project or production, a 2 concert production, a news show, a current-events show, a 3 pornographic production, or a current-affairs show that is 4 local, regional, or distributed only on the Internet. A 5 production may be produced on or by film, tape, or otherwise 6 by means of a motion picture camera, electronic camera or 7 device, tape device, computer, any combination of the 8 foregoing, or any other means, method, or device now used or 9 later adopted. 10 (f) "Production expenditures" means the costs of 11 tangible and intangible property used and services performed 12 primarily and customarily in the production, including 13 preproduction and postproduction, excluding costs for 14 development, marketing, and distribution. Production 15 expenditures include, but are not limited to: 16 1. Wages, salaries, or other compensation, including 17 amounts paid through payroll service companies, for technical 18 and production crews, directors, producers, and performers. 19 2. Expenditures for sound stages, backlots, production 20 editing, digital effects, sound recordings, sets, and set 21 construction. 22 3. Expenditures for rental equipment, including, but 23 not limited to, cameras and grip or electrical equipment. 24 4. Expenditures for meals, travel, and accommodations. 25 (g) "Qualified expenditures" means production 26 expenditures incurred in this state by a qualified production 27 for: 28 1. Goods purchased or leased from, or services 29 provided by, a vendor or supplier in this state which is 30 registered with the Department of State or the Department of 31 Revenue and doing business in this state. 3 10:26 AM 04/24/07 s0096.ft26.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. CS for SB 96 Barcode 561060 1 2. Payments to residents of this state in the form of 2 salary, wages, or other compensation up to a maximum of 3 $400,000 per resident for the general production queue and the 4 independent Florida filmmaker queue and up to a maximum of 5 $200,000 for the digital media queue. 6 7 For a qualified production involving an event, such as an 8 awards show, the term excludes expenditures solely associated 9 with the event itself and not directly required by the 10 production. The term excludes expenditures prior to 11 certification, with the exception of those incurred for a 12 commercial, a music video, or the pickup of additional 13 episodes of a television series within a single season. 14 (h) "Qualified production" means a production in this 15 state meeting the requirements of this section and the minimum 16 qualified expenditures and requirements of its appropriate 17 queue. The term excludes a production: 18 1. In which less than 50 percent of the positions that 19 make up its production cast and below-the-line production crew 20 are filled by residents of this state, whose residency is 21 demonstrated by a valid Florida driver's license or other 22 state-issued identification confirming residency, or students 23 enrolled full-time in a film-and-entertainment-related course 24 of study at an institution of higher education in this state; 25 or 26 2. That is deemed by the Office of Film and 27 Entertainment to contain obscene content as defined in s. 28 847.001(10). 29 (i) "Qualified production company" means a 30 corporation, limited liability company, partnership, or other 31 legal entity engaged in producing a qualified production. 4 10:26 AM 04/24/07 s0096.ft26.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. CS for SB 96 Barcode 561060 1 (2) CREATION AND PURPOSE OF PROGRAM.--The 2 entertainment industry financial incentive program is created 3 within the Office of Film and Entertainment. The purpose of 4 this program is to encourage the use of this state as a site 5 for filming and to develop and sustain the workforce and 6 infrastructure for film and entertainment production. 7 (3) APPLICATION PROCEDURE; APPROVAL PROCESS.-- 8 (a) A qualified production company in this state 9 producing a qualified production may submit a program 10 application to the Office of Film and Entertainment for the 11 purpose of determining certification. The application must be 12 submitted no earlier than 1 year before the date the 13 production is anticipated to start. The applicant shall 14 provide the office with information required to determine 15 whether the production is a qualified production and to 16 determine the qualified expenditures and other information 17 necessary for the office to determine certification. 18 (b) The Office of Film and Entertainment shall develop 19 a application form for use in qualifying an applicant as a 20 qualified production. The form must include, but need not be 21 limited to, production-related information concerning 22 employment of residents in this state, a detailed budget of 23 planned qualified expenditures, and the applicant's signed 24 affirmation that the information on the form has been verified 25 and is correct. The Office of Film and Entertainment and local 26 film commissions shall distribute the form. 27 (c) The Office of Film and Entertainment shall 28 establish a process by which an application is accepted and 29 reviewed for certification. The office may request assistance 30 from a duly appointed local film commission in determining 31 compliance with this section. 5 10:26 AM 04/24/07 s0096.ft26.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. CS for SB 96 Barcode 561060 1 (d) The Office of Film and Entertainment shall review 2 the application within 10 business days after receipt. Upon 3 its determination that the application contains all the 4 information required by this subsection and meets the criteria 5 set out in this section, the office shall qualify the 6 applicant and recommend to the Office of Tourism, Trade, and 7 Economic Development that the applicant be certified. Within 5 8 business days after receipt of the recommendation, the Office 9 of Tourism, Trade, and Economic Development shall reject the 10 recommendation or certify the applicant. 11 (e) The Office of Film and Entertainment shall deny an 12 application if it determines that the application is not 13 complete or the production does not meet the requirements of 14 this section. 15 (f) The Office of Film and Entertainment shall develop 16 a process to verify the actual qualified expenditures of a 17 certified production. The process must require: 18 1. A certified production to submit, in a timely 19 manner after production ends and after making all of its 20 qualified expenditures, data substantiating each qualified 21 expenditure to an independent certified public accountant 22 licensed in this state; 23 2. Such accountant to conduct an audit, at the 24 certified production's expense, to substantiate each qualified 25 expenditure and submit the results as a report, along with all 26 substantiating data, to the Office of Film and Entertainment; 27 and 28 3. The Office of Film and Entertainment to review the 29 accountant's submittal and report to the Office of Tourism, 30 Trade, and Economic Development the final verified amount of 31 actual qualified expenditures made by the certified 6 10:26 AM 04/24/07 s0096.ft26.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. CS for SB 96 Barcode 561060 1 production. 2 (g) The Office of Film and Entertainment shall ensure 3 that, as a condition of receiving incentive funding under this 4 section, marketing materials promoting this state as a tourist 5 destination or film and entertainment production destination 6 are included, when appropriate, at no cost to the state, which 7 must, at a minimum, include placement in the end credits of a 8 "Filmed in Florida" logo with size and placement commensurate 9 to other logos included in the end credits or, if no logos are 10 used, the statement "Filmed in Florida using Florida's 11 Entertainment Industry Financial Incentive," or a similar 12 statement approved by the Office of Film and Entertainment 13 before such placement. The Office of Film and Entertainment 14 shall develop a "Filmed in Florida" logo and supply it for the 15 purposes specified in this paragraph. 16 (4) PRIORITY FOR INCENTIVE FUNDING; WITHDRAWAL OF 17 ELIGIBILITY; QUEUES.-- 18 (a) The priority of a qualified production for 19 incentive funding must be determined on a first-come, 20 first-served basis within its appropriate queue. Each 21 qualified production must be placed into the appropriate queue 22 and is subject to the requirements of that queue. 23 (b) Each qualified production or certified production 24 shall continue on a reasonable schedule, which means beginning 25 principal photography in this state no more than 45 calendar 26 days before or after the date for such commencement which was 27 provided in the program's application under subsection (3). 28 The Office of Tourism, Trade, and Economic Development shall 29 withdraw the eligibility of a qualified production or a 30 certified production for incentive funding if any such 31 production does not continue on a reasonable schedule. 7 10:26 AM 04/24/07 s0096.ft26.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. CS for SB 96 Barcode 561060 1 (c) At least 85 percent of incentive funding available 2 under this section in any state fiscal year must be dedicated 3 to the general production queue. Within this queue: 4 1. A qualified production, excluding commercials, 5 music videos, and digital media projects, which demonstrates a 6 minimum of $625,000 in qualified expenditures is eligible for 7 incentive funding. A qualified production spanning multiple 8 state fiscal years may combine qualified expenditures from 9 such fiscal years to satisfy the threshold. 10 2. A qualified production company that produces 11 national, international, or regional commercials, or music 12 videos may be eligible for incentive funding if it 13 demonstrates a minimum of $100,000 in qualified expenditures 14 per national, international, or regional commercial or music 15 video and exceeds a combined threshold of $500,000 after 16 combining actual qualified expenditures from qualified 17 commercials and music videos during a single state fiscal 18 year. After a qualified production company that produces 19 commercials, music videos, or both reaches the threshold of 20 $500,000, it is eligible to apply for certification for 21 incentive funding. 22 3. An off-season certified production is eligible for 23 an additional 5-percent incentive funding on actual qualified 24 expenditures. An off-season certified production that does not 25 complete 75 percent of principal photography due to disruption 26 caused by a hurricane or tropical storm may not be 27 disqualified from eligibility for the additional 5-percent 28 incentive as a result of the disruption. 29 4. Each qualified production shall make a good faith 30 effort to the existing providers of infrastructure or 31 equipment in this state, including providers of camera gear, 8 10:26 AM 04/24/07 s0096.ft26.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. CS for SB 96 Barcode 561060 1 grip and lighting equipment, vehicle providers, and 2 postproduction services when available in-state. 3 (d) Five percent of incentive funding available in any 4 state fiscal year must be dedicated to the independent Florida 5 filmmaker queue. An independent Florida film that meets the 6 criteria of this queue and demonstrates a minimum of $100,000, 7 but not more than $625,000, in total qualified expenditures is 8 eligible for incentive funding. To qualify for this queue, a 9 qualified production must: 10 1. Be planned as a feature film or documentary of no 11 less than 70 minutes in length. 12 2. Provide evidence of 50 percent of the financing for 13 its total budget in an escrow account or other form dedicated 14 to the production. 15 3. Do all major postproduction in this state. 16 4. Employ Florida workers in at least six of the 17 following key positions: writer, director, producer, director 18 of photography, star or one of the lead actors, unit 19 production manager, editor, or production designer. As used in 20 this subparagraph, the term "Florida worker" means a person 21 who has been a resident of this state for at least 1 year 22 before a production's application under subsection (3) was 23 submitted or a person who graduated from a film school, 24 college, university, or community college in this state no 25 more than 5 years before such submittal or who is enrolled 26 full-time in such a school, college, or university. 27 (e) Ten percent of incentive funding available under 28 this section in any state fiscal year shall be dedicated to 29 the digital media projects queue. A qualified production that 30 is a digital media project that demonstrates a minimum of 31 $300,000 in total qualified expenditures is eligible for 9 10:26 AM 04/24/07 s0096.ft26.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. CS for SB 96 Barcode 561060 1 incentive funding. As used in this paragraph, the term 2 "qualified expenditures" means the wages or salaries paid to a 3 resident of this state for working on a single qualified 4 digital media project, up to a maximum of $200,000 in wages or 5 salaries paid per resident. A qualified production company 6 producing digital media projects may not qualify for more than 7 three projects in any 1 fiscal year. Projects that extend 8 beyond a fiscal year must reapply each fiscal year in order to 9 be eligible for incentive funding for that year. 10 (5) RULES, POLICIES, AND PROCEDURES.--The Office of 11 Tourism, Trade, and Economic Development may adopt rules under 12 ss. 120.536(1) and 120.54 and develop policies and procedures 13 to administer this section, including, but not limited to, 14 rules specifying requirements for the application and approval 15 process. 16 (6) ANNUAL REPORT.--Each October 1, the Office of Film 17 and Entertainment shall provide an annual report for the 18 previous fiscal year to the Governor, the President of the 19 Senate, and the Speaker of the House of Representatives which 20 outlines the return on investment to the state on funds 21 appropriated by this act. 22 (7) REPEAL.--This section is repealed July 1, 2010. 23 Section 2. For the 2007-2008 fiscal year, the sum of 24 $10 million is appropriated from the General Revenue Fund on a 25 nonrecurring basis to the Office of Tourism, Trade, and 26 Economic Development for the Office of Film and Entertainment 27 for purposes of implementing s. 288.1254, Florida Statutes. 28 Notwithstanding s. 216.301, Florida Statutes, to the contrary, 29 the unexpended balance of this appropriation shall not revert 30 until June 30, 2009. 31 Section 3. This act shall take effect July 1, 2007. 10 10:26 AM 04/24/07 s0096.ft26.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. CS for SB 96 Barcode 561060 1 ================ T I T L E A M E N D M E N T =============== 2 And the title is amended as follows: 3 Delete everything before the enacting clause 4 5 and insert: 6 A bill to be entitled 7 An act relating to the entertainment industry; 8 amending s. 288.1254, F.S.; revising the 9 entertainment industry financial incentive 10 program; providing purpose of the program; 11 providing for submittal and approval of an 12 application under the program; providing for 13 review by the Office of Film and Entertainment 14 and the Office of Tourism, Trade, and Economic 15 Development; providing standards for review; 16 providing for verification of which 17 expenditures concerning an entertainment 18 production qualify for incentive funding under 19 the program; requiring inclusion of marketing 20 materials promoting this state as a condition 21 of receiving incentive funding; establishing 22 queues; specifying requirements concerning each 23 queue; authorizing the Office of Tourism, 24 Trade, and Economic Development to adopt rules, 25 policies, and procedures; requiring an annual 26 report to the Governor and the Legislature; 27 providing for future repeal; providing an 28 appropriation; providing an effective date. 29 30 31 11 10:26 AM 04/24/07 s0096.ft26.001